J-Squared New ToughDisk Rep

FORMATION, INC. SIGNS J-SQUARED TECHNOLOGIES
AS TOUGHDISK® RUGGED HARD DISK REPRESENTATIVE

Agreement Enables Formation to Better Meet Demand in
Canada and U.S. for Cost-Effective, Rugged Data Storage

MOORESTOWN, NEW JERSEY, USA, (January 30, 2007)…Formation, Inc. announced today it has signed J-Squared Technologies Inc. to market its ToughDisk® Rugged Hard Disk products for commercial and military applications throughout Canada and regions in the U.S. The agreement enables Formation to expand its marketing reach to better meet the growing demand for rugged data storage.

“J-Squared has a strong reputation in the embedded systems industry with broad coverage in the Canadian market,” says Claude Langlois, vice president of J-Squared’s Embedded Systems Group. “The ToughDisk product line complements our existing portfolio of components to make rugged data storage more accessible for commercial and military applications.”

J-Squared will represent the ToughDisk product line in the following geographic regions: Canada, Pacific Northwest (Oregon and Washington), and Southeast U.S. (North Carolina, South Carolina, Tennessee, Mississippi, Georgia, Alabama, and Florida).

Formation’s ToughDisk Rugged Hard Disks provide a low-cost alternative to solid state data storage built specifically for extreme environments. The disks perform reliably in temperature, shock, vibration, humidity and dust conditions that would destroy conventional hard disks.

About J-Squared Technologies Inc.

J-Squared Technologies Inc. is a leading technology sales and services organization that represents manufacturers of computing systems, electronic components, embedded systems, and software and services throughout North America.

About Formation, Inc.

Formation, Inc. of Moorestown, NJ, USA designs and manufactures hardware and software products and provides related engineering services for the defense, aviation, data communications and transportation industries. Products include ToughDisk Rugged Hard Disks, Advanced Integrated Recorders, avionics-class servers, rugged wired and wireless networks and the Mobile Vehicle Tracker.

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Company Contact: Gene Lovely +1 (856) 380-2926 genel@formation.com